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Following the first ever merger of Kuwaiti banks earlier this year, Boubyan Bank and Gulf Bank have presented a proposal for a merger that will create a single bank compliant with Islamic shariah principles.
In separate regulatory filings on the Kuwait bourse on Wednesday, the listed banks said the merger will help fuel growth and expansion.
The lenders, who have received approvals from their respective boards, said they plan to sign a memorandum of understanding and a non-disclosure agreement to proceed with due diligence, valuation and feasibility studies of the proposal.
In February this year, Kuwait Finance House completed its merger with Ahli United Bank-Kuwait following its $11.6 billion cross-border acquisition of Ahli United Bank-Bahrain in July 2022.
For Q2 2024, Boubyan Bank, an Islamic lender, posted a net profit attributable to shareholders of 24.62 million Kuwaiti dinars ($80.52 million), 19% higher year-on-year.
For the same period, Gulf Bank made a net profit of KWD 15.53 million, down from KWD 18.55 million in the year-ago period, according to LSEG data.
(Reporting by Brinda Darasha; editing by Seban Scaria)